Achieving sustainable industrial growth is a complex endeavor, requiring careful adjustment of government spending and tax policies. Fiscal policy, the implementation of these tools by policymakers, can stimulate growth by enhancing aggregate demand or by allocating resources into productive sectors. On the other hand, excessive outlay can lead to
Fiscal Policy and Its Impact on Inflation
Fiscal policy, the government's utilization of expenditure and levies to influence economic activity, can have a profound influence on inflation. Expansionary fiscal policy, which involves increasing government spending or reducing taxes, can boost aggregate demand, leading to higher prices if supply cannot keep pace. Conversely, contractionary fis